Search engine giant Google (GOOGL) threatens to remove Google search engine from Australia after the Aussie government prepares a new law that will ask the company to share royalties with publishers.
Australia is introducing a world-first law to make Google, Facebook and potentially other tech companies pay media outlets for their news content. The Australian Competition and Consumer Commission, which introduced the new legislation would allow the media to bargain Google (GOOGL) and Facebook (FB) and to enter arbitration if the two parties can’t reach an agreement in three months. The new law would send the tech companies into negotiations with news publishers on the value of the content.
The new code will benefit the local newspapers and broadcasters. Australian newspapers have lost over 70% in advertising revenue since 2005. Big tech companies warn that the new law would end the free content that they offer.
Mel Silva the Google managing director in Australia said that the new law will leave no choice to the company but to stop making Google Search engine services available in Australia.